When services on Zillow seem to be absolutely free of cost, it becomes very obvious to think “how does Zillow make money“, Right? You are not the only one who is confused about prominent businesses like Zillow.
In a business, no lunch is a free lunch. When it seems free, you are the product. Exactly, this is the business model of Zillow. It is quite easy to understand if you observe their website keenly. If you want to know more, here’s an in-depth understanding of the Zillow business.
How Does Zillow Make Money?
Read on to know how does Zillow make money from its all free services.
1. From Buyers
The ones who want to buy the property pay Zillow for searching them the right place. This is the premium feature of the Zillow. It isn’t mandatory though, Zillow allows the buyers and the owners to communicate directly without any agent.
Still, there are a few buyers who opt for the premium service where they don’t wish to attend the calls and make commutes to the variety of properties. The buyers who are basically out of the city choose this option where they need assistance.
So, there are the buyers who wish to pay for such privileges, despite having free access to contact the owner. So, this is one of the ways through which Zillow makes money.
2. From Rentals
The ones who prefer to rent their house prefer to choose Zillow’s premium services. The services include paying the owner through the Zillow site, making the rental agreements, managing the maintenance, and other complaints from the site.
So, a few of the tenants prefer to take Zillow as a middleman instead of direct communication to the owner. They simply choose to avoid the disputes by opting for Zillow premium.
Also, there are several other offerings for the rentals and residences of the property. People usually choose to go through the app or site as it stays responsible for the inconvenience if occurred. The tenants living in the property recommended by Zillow, feel secure to pay and get served from the Zillow itself.
This is where the business comes and where the business grows.
3. From sellers
It is actually free for sellers to register themselves on the platform. But a few sellers who prefer to enlist themselves on the top, pay the platform to do so.
Sellers who want to highlight their several properties, amenities, and offer discounts; do promote themselves through premium services. There is a number of services, facilities, and USPs from the sellers that they want to offer on the forefront. But in the listicles, they might get lost.
So, sellers usually go for the premium listicles where they can choose their positions and their pointers. This gives the seller privilege to get featured where the buyer is more likely to be interested.
4. From Agents
If you check a website like Zillow, you will obviously feel it has no agent, but it does. The agent comes into the picture where buyer and seller want assistance. The people residing in the same city won’t feel the urge of having a buyer. But a person residing out of the station does need an agent.
Also, people residing in the city might be busy with their own business, so won’t be able to make time to investigate the property they are buying. Here comes the requirement of an agent. This is where Zillow gets a chance to make some bucks.
5. From Home Loan Offerings
Here comes the real business! Home loan, mortgage, and stuff. We all know how it is done – offerings and interests. So, yeah! You know it right?
Still, let us explain. Zillow basically offers home loan or financing options to those who don’t wish to purchase the property in one go. This is the option which attracts more than 95% of people. They choose to EMI the property and the rest is the business story that you know already.
The offerings that Zillow makes are better and quicker than bank home loans. The loan process is hectic and complex but not with Zillow. Everything is done quickly and hassle-free online itself. So why not Zillow!
6. From allotting Ad banners for other businesses
When it comes to the housing society and properties, there come “many” things. For such “many” things, there is a space on the Zillow website.
They promote other services that are relevant to the buyers, rentals, sellers, and agents. And thus, they end up having sponsorships!
Bottom Line
We hope the above article on “How Does Zillow Make Money” is clear to you so far. Do you know any other secret way through which Zillow is making money, mention it! (Whispering) Comment below, please.